Type:
Bearish Momentum
Key Levels:
Resistance: 0.77305
Pivot: 0.76450
Support: 0.75615
Preferred Case:
On the H4, with price moving below the ichimoku cloud and within the descending channel , we have a bearish bias that price will rise and drop from the pivot at 0.76450 where the overlap resistance, 50% fibonacci retracement and 100% fibonacci projection are to the 1st support at 0.75615 in line with the swing low support.
Alternative Scenario:
Alternatively, price may break pivot structure and rise to the 1st resistance at 0.77305 where the swing high resistance is.
Fundamentals:
As a result of the BoC rate increase of 100bps recently, we have a bullish bias on the Canadian Dollar . We'll need to exercise caution for this setup because our fundamentals and technicals are not completely aligned
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.